I remember waiting in line for an in store appearance of the band Sepultura at Utopia Records back when Utopia Records were situated on Clarence Street, Sydney. It was the early nineties and the in-store had the classic Sepultura line up. My cousin at that time (who was a drummer) had a real bashed in snare skin for Igor to sign, I had a couple of CD’s and a poster and the others all had various forms of music (LP’s or CD’s or drumsticks or guitar cases and so forth).

Sepultura was cult like popular then. They sat in an area that satisfied a few different markets. You had the “betrayed” original Metallica fans. You had fans of the original “thrash” movement. You had fans of the “Death Metal” market. You had fans of the “Extreme Metal Market”. And you had fans of the new “Groove Metal” market. Shredders appreciated them.

I remember asking one of the Utopia guys who was doing line management outside the building, why so many people came to Utopia on a daily basis just for chit-chat. He replied that they come to buy CD’s and I disagreed with him. I told him that nobody wakes up in the morning and says to themselves I need to spend $30 on a CD. We wake up in the morning and we say to ourselves, we want to hear the new Sepultura album, the new Motley Crue album and we want to hear it right now. And in order to hear that song, we HAD to buy a CD or an LP. Because radio sure wouldn’t play it.

So a bit of talking goes back and forth and the Utopia dude goes on to tell me I have no idea what I am talking about as Utopia sell hundreds of thousands CD’s a year.

The recording industry failed to realize that it existed not to sell records or CDs but simply to find the fastest, easiest way to let fans hear the song we wanted to hear. If they realised that, then they would have invented the iPod and iTunes. Instead history shows that a company not even in the music industry, did that instead. And now Apple makes billions of dollars selling music. So going back to my Utopia example, they are nowhere near the force it was back in the early to mid nineties and I wouldn’t be surprised if it shuts its doors eventually (which I hope never happens \:::/).

Apple has been selling tracks at the iTunes store since 2003. Apps, books, movies and TV shows came after. Yet, no one complained about the accounting and to my knowledge no one has sued Apple for unpaid royalties. Artists may complain about Apple taking a 30% cut, however that was the deal.

YouTube and Spotify have been streaming songs from about 2006 and 2008 respectively. Of course there are others on the market as well that offer streaming services like Pandora, Google, Deezer and so on. However, one thing these companies have done is they pay. They honour their deal. Which is the reverse of what the record labels did.

You know, those record labels that got sued by artists for their accounting practices, claiming they’ve been screwed over by the label. You know those record labels famous for paying late or paying at all. You know those record labels for never honouring a deal. You know those record labels that threatened to derail your career and you end up settling for less than you deserve.

What pisses me off is that while people complain about Spotify stream payments and YouTube stream payments and Pandora royalties, at least these techies are honest in their deals at this point in time. It just seems that the record labels who are the majority rights holders are not passing on the monies.

Because a deal is never a simple deal to the recording business. The labels don’t want simple. The labels don’t want royalties to be computerised because that would mean there is transparency and with transparency, profits would disappear. The major label business model is based on STEALING from the artist. That is why you have artists like Eminem, Dave Coverdale and others suing their labels for unpaid iTunes royalties. That is why you have artists suing their labels for unpaid monies due to creative accounting practices.

Believe me, if an CEO’s pay packet was suddenly short, he’d drop everything and do his best to get it right if the problem wasn’t immediately rectified. But if it’s the artist?

Look at the complex math that goes on here. The recording and publishing industries get a yearly license fee from the tech companies like Pandora, Spotify, Amazon, iTunes, Google and so on to have their music collections on the products that the tech companies offer.

Then the recording and publishing industries (via the music fan) get paid 70% for a download and 70% in royalty payments from a stream/view.

So with so much money trading between people how can people say that music is free.

How come no one is saying that APPS are free. We are all using a plethora of apps every day, and 99.9% of them are free. If anything we expect them to be free. And has that stopped people from creating new apps.

We Don’t Need Stronger Copyright Regulations To Encourage People To Create

Back in 1999, the RIAA said that Napster and piracy would stop people from creating new music because they would have no incentive to make music anymore. Then by 2005, the same argument shifted to Copyright Reform. The recording industry argued that copyright needed stronger enforcement provisions and no due process because if that didn’t happen no new music would be created.

Well guess what.

Just the opposite has happened.

More people are making more music than ever before. What we do need is for the Public Domain to be replenished again with music.

The CD

Apple has phased out the CD/DVD drive from their computers which means the CD be another niche product in the same way that vinyl is. For collectors only, because it turns out that the majority of music lovers just wanted access to music. It was never about ownership.

The MP3

It was a by-product of the CD. As the tech got better, the quality got better. Now it will become a by-product of streaming.

Streaming plus MP3

Putting my Nostradamus hat on, I predict that the streaming services will begin to offer MP3 downloads as part of a super-premium package. At the moment 45% of people still like to buy mp3’s. 45% of a three hundred million population in the US is a lot of people.

Anyone seen the adoption curve. It’s basically a bell curve that shows that 2.5% of people are innovators, 13.5% are early adopters, 34% are early majority, 34% are late majority and 16% are laggards. So in relation to streaming, it is safe to say that we are in the early majority phase right now. So if you are an artist or a record label or a tech company, how do you get the 50% plus of the late majority and the laggards to commit earlier. Offer them a product that meets their needs.

Record Labels

Still the best way to get your music heard as they have the money and the contacts. But they are still doing it wrong. They believe that a blitzkrieg publicity campaign will ensure success. The more we’re beaten over the head with something, the less likely we are to check it out.

Music Press

Save your money and don’t take the easy way out. Promote yourself personally. Work with people. Talk to people. There are no short cuts. In today’s world, the music press has never broken a band to the masses. The band has broken themselves with their music. If you make it great they will come.

Technology And Music

Fans of music want to listen to old songs however we have no desire to use an old computer like a Commodore 64 or an Amiga 500. However if both industries want to stay relevant they need to innovate and create something new and great on a regular basis. If you don’t you will be like Gene Simmons, slowly fading in the rear-view mirror and screaming to anyone who cares about the old gatekeeping model to return.

Concerts

Streaming concerts will never work as people still want to be there for the experience even though the sound quality might be terrible. As for the price of tickets, the acts are to blame. The prices I have paid range from $50 to $250 a ticket over the last two years. Guess who charged $250 a ticket. Yep it was the big acts from the Seventies and Eighties. Kiss, Motley Crue and Bon Jovi charged that.

Bands like Avenged Sevenfold, Trivium, In Flames, Five Finger Death Punch, Richie Sambora, Coheed and Cambria all charged around the $70 to $80 mark while Protest The Hero charged $50.

Know Your Fans

Great artists have made a living long before the advent of the phonograph and the recording industry. It’s because of patronage. Loyal fans will buy your super deluxe packaging, they will view your YouTube videos, they will stream your music on Spotify and they will spread the word for you. Do you know who they are? If you don’t then you are leaving money on the table.

Success And A Career

The odds of success are really low. So what can you do differently? You need to be determined as the bar is set really high. You have to be committed to the cause and honest. If you want a career you need to always pick up a new generation of people to discover you.

You want to know an upside to music piracy. Just have a look at all of the Classic Rock acts from the Seventies, Eighties and even Nineties doing big business on the live circuit and they are making way more money now than what they made at the peak of the fame when recording sales set the benchmark.

Def Leppard, Motley Crue, Twisted Sister, Slash, Evergrey, Europe, Whitesnake, Stryper, Machine Head, Dream Theater and Tesla have been seeing for the last decade, younger and younger people coming to their shows. They sing along and know all of the words. The audience base needs to be replenishment if you want a career.

And you need to have an opinion, which is hard to have in a society that is focused on being liked. However life is short and you have one voice. Use it.

Teaching

Imagine your favourite artist as your teacher. The personal interaction is what makes a difference. Playing a big show is one thing however teaching has a greater impact. You are giving someone more than just a good time, you’re helping someone grow, hopefully to the point that they will do the same for others.

And I am not talking about guitar clinics or drum clinics. I am talking about being an actual music teacher on your time off. It could be a six to eight week course in the city you live in. Eight 30 minute lessons per day might seem like a waste of time to you but to someone else it could be a lifetime changing experience. So what are you waiting for, make the connection.

This is my record and CD collection along with the issues from Guitar World from January 1986.

My kids have all of this on their iPod’s and iPad’s.

THE PURCHASE OF MUSIC from RETAIL STORES vs INSTANTANEOUS

I took the kids to the “Record Store Day” two days ago.

They loved the record store and it was their second record store that they had visited ever. They enjoyed searching through the piles of records but hated the following things;

– the line up/wait to pay for our purchases compared to clicking a few keys and having it all happen instantaneous.

– the chance that what I wanted to buy at the Record Store Day could not be there or it could have sold out compared to having the history of music available at your fingertips without any issues. For the record, it was the last copy of the “Killers and Kings” single and the second last copy of the “The Illumination Theory” picture LP.

– that once they found a record that had a cool cover from an unknown act, they couldn’t hear it BEFORE they decided to buy it compared to what they do on-line with YouTube and Spotify.

– the price of the special edition releases. As a hobbyist/collector I paid $30AUS for the Machine Head “Killers and Kings” single and $40AUS for the Dream Theater “Illumination Theory” picture LP. My kids thought I was insane, spending $70AUS on two products, especially when a years subscription to Spotify is just a touch more and for that you get millions upon millions of songs.

MY BOOK COLLECTION and DVD COLLECTION vs THE KIDS BOOK COLLECTION

In other words, Physical books vs The Kindle Touch.

If you are a business that is in the entertainment/arts arena that is still hoping on physical sales for profits, then your business model is challenged.

Research is constantly showing that in order to compete with piracy, sellers of music, movies and books need to have a “free music approach, targeted at young users and supported by advertisements along with a high-quality music offering to older customers, where they pay for downloads but with no visible advertising.”

The take away is this comment;

“Our research shows that consumers do prefer legal and ethical options if available but each age group has different ways of making this economically viable.”

I bet that comes to a shock to the traditional labels and marketing firms. The days of when music was only made available to people who had disposable incomes are over and have been for a long time.

Music consumption is now being driven by different age brackets. The 113 million streams of Katy Perry’s “Roar” is being driven more by the kids in the 4 to 14 age bracket than the 25 plus adults. It is the song of the young, their anthem, their “We’re Not Gonna Take It”.

It all reminds me of a song I once wrote called “Times Are Changing”.

I wrote it in 1993, just when Grunge finally made the hard rock movement a footnote in history for the next decade. And the song wasn’t about the death of hard rock, it was the about the power of a cultural movement enforcing a change that no one could stop. As the pre-chorus stated;

It’s a revolution in their eyes
Against society and its lies

Times are changing, re-arranging x2

Guess the times are constantly changing and they are changing even faster in the era of the internet. And when I compare the new to the old, the times have really changed.

During the recorded music industries heyday, there was this widespread idea, sort of like an unwritten law, that we (the fans of music) could purchase music and own it, the same way we purchased and owned the toaster and any other commodity.

Of course when it comes to music, that was never the case. What the music fans actually purchased was a non-transferable license to listen to the music under very specific and strict conditions. Nothing else was transferred to us with our expensive $30 purchase of a CD, other than the right to enjoy the music in private, over and over again.

So what do we have now. We have sales of music falling. Actually they have been falling for some time. The RIAA and the record labels are attributing this to piracy alone, linking the decline of sales with the increase of P2P file sharing usage.

So for the RIAA and the Record Labels, plus some misguided artists, it is simple, these two events correlate, so it implies that one is causing the other to move.

The thought that fans of music have changed the way they consume music doesn’t compute for the Majors and their association.

The arrival of iTunes and the chance to cherry pick what we want rather than complete albums is a pretty good indication that revenue streams would reduce. Instead of spending money on an expensive shiny piece of plastic for two songs, we could now just download those two songs.

The arrival of YouTube and streaming services have also put a dent into the traditional sales model. Of course, piracy does play its part, however with the increase in people attending concerts and festivals, one needs to ask the question, did piracy assist in this?

Watch the Iron Maiden doco, Flight 666. Nicko McBrian talks about not selling an album in Costa Rica, however they have sold out the local sports stadium. Twisted Sister haven’t released any new music, however in Europe they have a massive fan base that includes both old and young. Did piracy cause this?

The arrival of many platforms that allow DIY bands to release has caused a flood of new music to enter the music business. Competition is now at an all-time high.

What about the price of music? Normally if demand for a certain product drops, the prices for that product fall as well, to reflect the lower demand. It is simple economics. So what do the record labels do? They maintain the high prices so that they can maximise profits. So the recording industry is holding on to high price points and they blame piracy in the meantime for the decline in sales.

So if people are purchasing less music or illegally downloading content, how is this effecting the income of artists? Do artists still have an incentive to create music.

For starters, the majority of artists do not get into music to be millionaires. They get in to music because it satisfies a basic human need to be creative.

In relation to less incentive, this doesn’t seem to be the case. There is so much music hitting the market that no one has enough time to hear it all. In addition, if the artists is doing the live circuit, incomes in this arena are increasing. Some artists that don’t sell a lot sure get a lot of people into their shows.

I am listening to “Are You Gonna Go My Way” today, the third studio album by American rock musician Lenny Kravitz, released in 1993.

It’s funny that after all this time I still like only 3 songs from the CD, which are “Believe”, “Sister” and “Are You Gonna Go My Way” in that order. There is also a track called “All My Life” that appeared on some bonus CD’s or as a B-side that is also up there. However, to hear all of the songs mentioned, I had to purchase the record label “promotional tool”; the good ol’ expensive CD.

That is why the album went multi-platinum everywhere.

Consumers of music had to purchase 10 to 14 songs, just to hear 4 to 5 songs. Of course we could have purchased the singles, however at $7 a single (that was the price in 1993), why spend $14 on two songs, when for $20 (on sale) or $27 (as a new release) you could buy the album.

I actually purchased the album for the song “Believe”. That is a great song and a dead sit hit in my book. When that lead break cuts in at the end, along with the strings, it’s goose bumps all the way.

The album went Gold (U.S) in May, 1993, three months after its release. By June, 1993, it was certified Platinum (U.S). By January, 1995, it was certified 2x Multi-Platinum. If you look at Kravitz’s most recent certification, it is for a single. How times have changed?

I don’t want to pay for a batch of songs I don’t like anymore. I didn’t used to be this way. I lived for music.

Misguided people think that piracy ruined the recorded business. What they don’t realize is that most people didn’t want the album/CD. People wanted that unique track. When the CD came and the record labels started charging us a fortune for it, albums suddenly became very long.

Instead of getting 35 to 45 minutes of music every year, we started to get 50 to 70 minutes of music every two to three years.

So the recording business saw the large profit margins and just kept on marching along with the overpriced CD’s business model, using MTV to push and promote the artists. So when people got the option to download, to cherry pick what they wanted to hear, a whole new market place was born.

We didn’t have to pay attention to what the major labels pushed on us anymore or any other label for that matter, because we started to have options. Today, we have options galore. That is why there will not be any super stars like there used to be. Competition in the market place diluted the record sales.

When I see artists like Thom Yorke and Nigel Godrich complaining about Spotify, I just shake my head. Thom and Nigel have to be real damn great just to have a little bit more than a tiny audience today. The old paradigm of fans purchasing CD’s that had a lot of filler because very little content was available is over.

To stand out today, artists like Thom and Nigel have got to be incredible. Protest The Hero went via Indiegogo to raise funds for “Volition”. Their goal was $125K and they ended up getting over $341,146 USD from a fan base of 8361 fans. I gave $50. A small audience that was happy to spend money.

The report from the “London School of Economics” called “Copyright & Creation: A Case for Promoting Inclusive Online Sharing” hits the nail on the head. Online piracy is not hurting the music industry. It has put a dent in recorded music sales, however that was inevitable with the shift in technology, the over saturated marketplace and the years of fan abuse by pushing overpriced CD’s. It’s simple economics. There is so much supply and the fans of music demand only what is great.

There is an argument from certain song writers that since people began downloading music without paying, royalties for them have dried up. Some have even had to take full-time jobs. Big deal is what I say. If you are a songwriter, then write more songs and better ones. Copyright was never designed to be a pension fund.

The bottom line is this – if the artist creates that undeniable song, they will have no problems selling it. The song will sell itself. I parted with $27 back in 1993 for the song “Believe.”

Looking at all the certifications around the world from the industry bodies, one thing is certain. The singles are dominating. So all those metal and rock bands spending years and dollars on a long player are doing it wrong.

Even Metallica now, have single Platinum certifications from songs that were released on their first five albums.

The following songs were given a GOLD certification by the RIAA (U.S) on December 13, 2012.

For Whom The Bell Tolls

Fade To Black

The Unforgiven

Master Of Puppets

Nothing Else Matters

One

Enter Sandman (was also given a Platinum certification for both digital and physical singles)

The Day That Never Comes

Until It Sleeps

Five albums are presented in the above list that ranges from 1983 to 2008.

We don’t need new laws to provide better protection for artist copyright. We need artists to create great tracks. We need laws that reduce copyright and puts the focus back on the Public Domain.

We don’t need to encourage internet service providers to make their customers do the right thing. We need to give customers a reason to buy.

Looking at the recent spate of releases from bands that I like, I am asking the question;

When did new music change from being about new and original music to a maintenance model of new music?

Five Finger Death Punch’s new album “The Wrong Side Of Heaven Vol. 1” is “American Capitalist” Part 2. So I am assuming that volume 2 of “The Wrong Side Of Heaven”, will be “American Capitalist” Part 3.

In order to define what I mean by new, I will use Metallica as an example.

Metallica released “Kill Em All” in 1983, which paid homage to the “New Wave Of British Metal” movement with the tempo’s increased to 200 beats per minute. It was new, and there was a technical element to it. It spawned a thousand imitators.

In 1984, they released “Ride The Lightning”. It wasn’t the same as “Kill Em All”. It was vastly different musically and lyrically and it was new. The people responded and Metallica went into refining the “Ride The Lightning” model with great success.

“Master Of Puppets” is a very similar sounding album and the track listing mirrors “Ride The Lightning”. The difference between the albums was the songs. Metallica improved as songwriters. The people responded even more. Then came the technical masterpiece of “..And Justice For All”. Again, the structure of the album was built around the “Ride The Lightning” model. However, even though it was a new album, it was still released under the maintenance model built around “Ride The Lightning”.

Then in 1991, they pressed the reset switch and released “Metallica”. It was back to the new and the people responded in the twenty millions. The “Load” and “ReLoad” albums that followed fell into the Maintenance model of releases that followed the format of the mega successful “Metallica Black” album.

Then in 2003, they pressed the reset switch again and released “St Anger”. It was back to something different. Regardless of what others thought of it, it was a gutsy move to release an album that sounded like that, along with chaotic song structures.

Then in 2008, they pressed the reset switch one more time and delivered a new album rooted in the old. They had taken the best things from the “Ride The Lightning” model and the “Metallica Black” model to deliver “Death Magnetic”.

All bands encompass these transitions.

Let’s look at Dream Theater.

In 1988, they released “When Dream and Day Unite”. It was new, taking influence from the metal bands at the time and merging those influences with progressive elements.

In 1992, they released “Images and Words”. It was new again. They didn’t go and re-write “When Dream And Day Unite”. The people responded and the album was a success.

In 1994, they released “Awake”. This album formed part of their maintenance. A good album, however you can tell they tried to rewrite “Images and Words.” The people didn’t respond to this album as they did to “Images and Words.”

Then in 1997, they released “Falling Into Infinity”. This was a new album as it moved the band into a more mainstream progressive sound. Although it had progressive elements from all previous releases, the band was pushed to enter this direction. Again, it didn’t meet the expectations of the record label and it also caused division amongst band members.

In 1999, they pressed the reset switch and released a career defining album in “Scenes From A Memory”. People responded again to the band. It was a new album in every sense.

So in 2001, they went into part new and part maintenance mode. “Six Degrees Of Inner Turbulence” kept with the concept theme on CD 2. CD 1 was all new tracks that showcased a very metallic element of the band as well as a very Tool style progressive element. Of course by 2001, Tool were huge all over the world.

Then in 2003, they pressed the reset button again and came out with the best progressive metal album in “Train Of Thought”. Any die hard metaller that wasn’t sure about the band, committed to them with this release. People responded as well, as metalcore was also on the rise and those young kids were looking for other forms of heavy music.

So in 2005, instead of re-doing “Train Of Thought”, they went into a part new / part maintenance model again with “Octavarium.” A notable influence this time around was Muse, who by 2004, were huge all over the world.

With the change of record labels, “Systematic Chaos” saw the band return to the metallic elements of “Train Of Thought” in 2007 with great success.

2009 saw “Black Clouds and Silver Linings” which encompassed everything that Dream Theater is in six tracks. It was New and it set a standard.

2011 saw “A Dramatic Turn Of Events”, the first album to not feature Mike Portnoy, who wanted the band to take a 5 year break and when the band said no, he departed. This album following the maintenance model of “Black Clouds and Silver Linings” and “Images And Words.”

2013 saw the release of “Dream Theater.” It has three songs that really stand out in “Illumination Theory”, “The Bigger Picture” and “The Looking Glass”. In the end, this is Dream Theater trying to create something new, however it is another maintenance album.

When you put these bands against the hundreds of millions of other musicians all making music, how does it all stack up.

There is a lot of great music out there that hasn’t been heard. There is a lot of good, a lot of okay and a lot of crap music as well.

With so much music being made every day and released every day, it is impossible for everyone to listen to it all. So when the label bands do end up releasing music, they need to make sure they captivate us to stick around, otherwise we just move on, trying to find something else in the meantime. Some other new niche. That is the new music business.

When an artist has an audience they need to be thankful for that audience. They need to show some respect towards that audience. The label bands have a head start, however if they turnover too many maintenance style of releases compared to something new and refreshing, the audience will move on.

Back in the Eighties, piracy was rampant. Most of my music collection during that period was made up of music taped onto blank cassettes. My “wealthier” older cousin in Sydney always seemed to have his finger on the pulse on the latest releases and every time I visited, I was armed with blank cassettes and proceeded to copy (download) albums that he recommended to me. There was also another shadier character locally that used to sell dubbed cassettes from 50 cents to $1 dollar. He then used the money obtained from his buyers to purchase more albums that he would sell to us on dubbed cassettes.

I was not alone in doing this, nor was I the first. Most of the music from the seventies that was passed down to me by my brothers was in the same format (blank cassettes that got filled with music).

So what did my brothers do in the Eighties, when they were old enough and had their own incomes. They started purchasing the music they listened to in the seventies. It worked like this; for example, they would purchase “Destroyer” from Kiss on LP or CD and once they did that I would get the cassette copied version that they had.

Another interesting thing in the Seventies was that while we all lived together, we only needed one version of the album to listen to the music. So what happens when family members move out. One brother purchases the album, the other brother purchases the album and then I need to purchase the album and so on. You can see the exponential growth here when children grow up and move out.

So what did I do in the Nineties, when I had more cash at hand. I purchased every album I had on dubbed cassettes on CD. I re-purchased every LP I had on CD. I went to second hand record shops and purchased LP’s from the Eighties and Seventies very cheap. If I found a real gem in those purchases, I then purchased that album on CD.

I went to the Record Fairs and Collector Fairs that started to gain traction during this period. Again, I purchased a lot of LP’s very cheap at those Fairs. I saw it as a try before you buy. If I found a real gem, I then purchased that album on CD.

I was not the only one that did the above. Based on sales figures during this period, the Record Labels had their largest ever profits to date. Everything that came after 1999 has been linked back to the unbelievable profits the record labels made during 1998 and 1999.

In the end, did all the piracy from the Seventies and Eighties hurt any of the bands that I supported. These are the bands that where pirated heavily on cassettes (from a list of the shady dealer selling them for 50 cents to $1 dollar);

The answer is a resounding NO. All of those bands mentioned above are still around today in some form or another. All of those bands are part of pop culture in some form or another. They still have a loyal cult following and that cult following happened because of piracy.

If it wasn’t for cassette piracy, I never would have heard the full length albums of bands that did the rounds on MTV. I never would have heard “Master Of Puppets” from Metallica (I know own “Master Of Puppets” on CD, mp3 and LP).

The real hurter of bands was the Record Label. It was never piracy. Due to the labels having all the power in breaking a band, plus having all the control over the distribution, they would offer bands an unfair deal that stacked the deck in the Record Labels favour. For any musician that wanted their music exposed to a greater audience, it was the only option they had.

A lot of studies have come out stating that “pirates actually purchase the most.” I know it is a cliché statement at the moment however back in the Eighties I went to an Iron Maiden concert without actually owning an original copy of any of their albums. I went to a Megadeth concert without owning an original copy of their albums. The same with Bon Jovi, David Lee Roth, Guns N Roses and Stryper.